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JobKeeper Payment


· JobKeeper,Coronavirus,Business Assistance,PAYG Assistance,GST Turnover

The Government is introducing a wage subsidy program to support employees and businesses affected by the Coronavirus. The JobKeeper Payment is designed to help businesses to cover the costs of their employees’ wages, so that more employees can retain their job and continue to earn an income

The decision to apply for the JobKeeper Payment should be made as a total business decision taking into account; legal obligations, business impact, cash flow implementation, business planning and record keeping requirements

This is complex legislation, the following is a simple summary guide only for businesses under $1 billion excluding NFP. We recommend all decisions be made in conjunction with advice from your professional advisors or contact us to discuss

Step 1 - Eligibile Employer

  • Did you carry on a business at 1 March 2020?
  • Did you employ at least one employee in your business at 1 March 2020?
  • Are your employees currently employed in your business for eligible fortnights?
  • Is your business turnover less than $1 billion?
  • Has your business has a turnover fall of 30%?
  • Are you not an ineligible employer

If you answered yes to all of these, check out details on eligible employer  

Step 2 - Eligible Employees

Employees may be eligible if they are:

  • Employed by you
  • At 1 March 2020 Either - permanent full-time or part-time employee OR long-term casual (employed on a regular and systematic basis for at least 12 months) and not a permanent employee of any other employer
  • Over 16 years old
  • Australian resident (check all details on link below)
  • Not in receipt of payments: government parental leave or Dad or partner pay; payment in accordance with Australian worker compensation lay for an individual's total incapacity for work 
  • Agree to be nominated by your nominating employees including notify eligible employees, sending and collecting nomination notices 
  • Ensure you collect and file all completed Employee Nomination Notices
Check full details eligible employees 

Step 3 - Next Steps

If you are an eligible employer and have eligible employees you can complete check the following steps

  • Enrol for JobKeeper Payment NOW by using your ATO Business Portal or through your BAS or Tax Agent you must enrol by End of May however it is recommended you enroll by end of April
  • Confirmation you will claim the JobKeeper payment - from 4 May
  • What you need to do for your employees

Step 4 - Paying Your Employees

You need to pay your eligible employees at least the minimum amount of $1500 per fortnight, you cannot pay your employees less than $1500 even if you re-hire them or they earn less than this. You will not be eligible for JobKeeper payment if you pay your nominated employee less than $1500 per fortnight.

This step is essential - check all requirements for paying your eligible employees - to qualify for the April payment you must have paid your employees by the now extended date of 8 May 2020.

Step 5 - Eligible Business Participant

With all the publicity surrounding JobKeeper and an employee's entitlement this is one area that can be overlooked.

You may be a eligible for JobKeeper payment scheme for one individual in the business for a payment of $1500 per fortnight if you meet the following -

1. Eligible Business Participant

  • An individual Not Employed by your entity
  • Actively engaged in the business carried on by your entity at 1 March 2020 and for fortnight
  • Either: Sole trader, partner in partnership, adult beneficiary of trust, or shareholder or director in a company
  • Ensure you meet all details eligible business participant requirements which are very similar to eligible employees
  • Ensure your eligible business participant completes and returns the Nomination form (except for Sole Traders), which must be held on file.

2. Other Eligibility Requirements

3. How do you apply
  • Enrol your Eligible Business Participant while completing the JobKeeper enrolment on your business portal or though your BAS or Tax Agent

Step 6. - Ongoing Reporting

There are reporting requirements through STP or an alternative plus a monthly reporting obligation to ensure you continue to meet your obligations.

We wish to reinforce this is a simple explanation of complicated legislation, contact your professional advise or contact us if you have any queries.

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